A TNC stands for Trans-National Corporation. It is a company that operates in more than one country.
A footloose company is one which can chose where they want to locate. This is because of improved transport links and communications.
The video describes what a footlosse company is and some of the advantages and disadvantges of them.
Why do TNCs go global?
TNCs have their headquarters in MEDCs and often have their factories in LEDCs. Their headquarters are in MEDCs as often the work done here is highly skilled. So they need to be in a country where a large majority of the people educated come out with a high skill level.
So why do companies have factories in LEDCs?
There are a variety of reasons:
cheap labour - the wages paid in LEDCs are cheaper than in MEDCs
closer to raw materials
be nearer to large markets (places with big populations)
Less environmental and business regulation by LEDC governments
There are a variety of advantages and disadvantages associated with TNCs
Advantages
They give people jobs
They improve roads and airports
They invest in big projects
They help to develop mineral wealth and improve energy production
The money the workers earns can go into the local economy
They can improve the workers education and work skills
Disadvantages
The workers are poorly paid
Most of the profits go abroad
Few managers are local people
The factories cause pollution
Minerals are exported
The TNC can pull out of the LEDC with very little warning
The goods made in the factories are often of no use or too expensive for people in LEDCs
Call Centres are very important - make sure you can recall why companies like BT locate in countries like India
A TNC stands for Trans-National Corporation. It is a company that operates in more than one country.
A footloose company is one which can chose where they want to locate. This is because of improved transport links and communications.
The video describes what a footlosse company is and some of the advantages and disadvantges of them.
Why do TNCs go global?
TNCs have their headquarters in MEDCs and often have their factories in LEDCs. Their headquarters are in MEDCs as often the work done here is highly skilled. So they need to be in a country where a large majority of the people educated come out with a high skill level.
So why do companies have factories in LEDCs?
There are a variety of reasons:
- cheap labour - the wages paid in LEDCs are cheaper than in MEDCs
- closer to raw materials
- be nearer to large markets (places with big populations)
- Less environmental and business regulation by LEDC governments
There are a variety of advantages and disadvantages associated with TNCsCall Centres are very important - make sure you can recall why companies like BT locate in countries like India